9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 1351 - AT - Income TaxTax Collection at Source (TCS) - licence for the said business was in the name of Mrs. Pramila P. Rai assessee brothers wife - TCS was made on behalf of the license holder, who is a different person than the assessee - claim was rejected by the AO as well as the CIT(A) for the reaon that as per the procedure for claiming credit for TCS laid down in Rule 37-I of the I. T. Rules read with section 206C(4) credit can be given only for Mrs.Pramila Rai and not the Assessee - claim of the assessee that there was a family settlement and understanding by which the business of M/s. Prashanth Wines was to be carried beneficially by the assessee, though the licence for the said business was in the name of Mrs. Pramila P. Rai - HELD THAT - The issue requires to be set aside to the AO for examination afresh in the light of the outcome before the Central Excise authorities for transfer of excise licence from Mrs. Pramila P. Rai to the assessee. AO can take necessary safeguards to ensure that the interest of the Revenue is not affected or prejudiced in any manner. We therefore, set aside the issue of grant of credit of TCS to the AO for examination afresh on the lines indicated above. Appeal of the assessee is treated as allowed for statistical purposes.
Issues:
1. Claim for credit of Tax Collection at Source (TCS) under section 206C of the Income Tax Act, 1961 for Assessment Year 2018-19. Analysis: The appellant, a proprietor of a retail liquor business, appealed against the rejection of the claim for TCS credit by the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) (CIT(A)). The TCS was collected by Karnataka State Beverages Corporation Ltd. (KSBCL) in the name of the licensee, not the appellant. The appellant argued that there was a family settlement allowing him to operate the business beneficially. The AO and CIT(A) relied on section 206C(4) and Rule 37-I, stating that TCS credit can only be given to the person from whom it was collected, i.e., Mrs. Pramila P. Rai. The appellant contended that if the license is transferred to him, he should be entitled to claim the TCS credit. The Tribunal noted that the license transfer request was pending before the Central Excise Authorities and directed the AO to re-examine the issue after the outcome of the transfer request. The Tribunal emphasized that safeguards should be in place to protect the Revenue's interests. The Tribunal set aside the denial of TCS credit and allowed the appeal for statistical purposes. The decision highlighted the importance of resolving the license transfer issue before determining TCS credit eligibility. In conclusion, the Tribunal's decision focused on the need to wait for the resolution of the license transfer request before deciding on TCS credit eligibility. The Tribunal's direction to the AO to re-examine the issue post the license transfer outcome ensures a fair assessment while safeguarding the Revenue's interests. The judgment underscores the significance of legal procedures and administrative actions in determining tax credit entitlements under the Income Tax Act.
|
